Introduction
The modern world could be characterized by the blistering development of various sorts of firms and companies. The fact is that society has shifted its priorities promoting the development of small and large businesses in order to satisfy its demands and be able to choose the needed good. Under these conditions, companies should try to align its efficient functioning in order to be able to compete with some other actors who also tries to win the rivalry and take the market. In terms of this competition, all aspects of the functioning of the company obtain great significance. That is why, the thought through supply chain can guarantee a great advantage for a company.
Choice of the given company
Cogitating about the issue of supply chain and its management, it is possible to take Mercedes-Benz as the background for the discussion. The choice of the given company is predetermined by several facts. First of all, it is one of the most powerful and popular international companies in the world which incomes are about €129 billion (Daimler, 2015). It is obvious, that the success of the company could be taken as the great evidence of the attention given to the slightest details. Being one of the key factors of the success of any company, the efficient supply chain is of great priority for Mercedes-Benz. Due to this fact it is possible to start the analysis of the given issue.
Traditional supply chain
It should be said that traditional supply chain involves several canonic points.
These steps describe the whole process of production, starting with the materials needed for the manufacturing of certain details and ending with the ready product. However, every ring of this chain has a great number of various peculiarities which determine the level of the companys performance. Under these conditions, one realizes the fact that design of an efficient supply chain is the most important task for any company which tries to guarantee its prosperity and profitability. Mercedes-Benz is not an exception and it is possible to analyze every point in order to understand the pattern according to which an efficient supply chain could be designed.
The analysis
First of all, it should be said that the company gives a great deal of attention to this issue. For example, it invests about €90 million to make the given chain more efficient and reorganize it in accordance with the new conditions (Donati, 2015). Mercedes traditionally uses only high-quality materials for the manufacturing of its cars, that is why the suppliers are chosen very carefully, taking into account their image and the quality of their products. Being the first point of the supply chain, it creates the basis for the functioning of the whole company and helps to achieve high standards appreciated by the company.
Every car, created by Mercedes, consists of many components which should also be of a good quality and promote the improvement of the image of the company. Mercedes manufactures many various components which are used in its cars. However, there are still details which are bought from some other suppliers. In these terms, the company makes a contract, outlining the number of the needed details and fixing the price (Suppliers to the 2015 Mercedes-Benz C class, 2014). Moreover, requirements to the quality should also be outlined. The components supplied by some other manufacturers are used in the final products created by Mercedes and their price influenced the cost of the car. It could partially explain traditionally high price on Mercedes cars.
However, it should be said that Mercedes remains the main manufacturer of its products. That is why, this point of the supply chain is under the full control of the company. To maximize the customer value all stages of the car assembly are controlled by many various specialists who investigate various showings and assures that products meet the standards introduced by the company. This practice could help to achieve several purposes. First of all, it helps to avoid various spoilages in the production of cars which, in its turn, could help to save the image of the company and promote its development. Secondly, careful examination of goods could help to avoid the procedure of recall when the whole line has to be returned to the manufacturer.
Logistics in one of the most important aspects of the whole supply chain. The fact is that about 20 percents of the cars value are determined by this very issue (Hetzner, 2015). That is why, Mercedes is interested n the creation of the efficient pattern according to which the cars could be distributed. There are several ways to do it. The first one implies the creation of plants in regions with the high level of demand for the cars. It could help to save money spent on the delivery and make it more efficient. The second way means the introduction of the company’s representative offices in countries or regions which are expected to demonstrate the high level of interest towards the products of the company. These two ways are used by Mercedes in order to curb spending and make the cars cost lower, which could lead to the increase of the customers interest towards the products.
Finally, another important aspect of the efficient supply chain is the sales process as it has a great impact on the functioning of the whole company and customers attitude to its products. That is why, Mercedes gives a great deal of attention to this very process, controlling the main steps and suggesting certain recommendations that could help to increase the level of sales (Piotrowicz & Cuthberston, 2015).
First of all, the company is open to its customers and provides all information connected with a certain car or line. Besides, the practice of test drives is also introduced by the company in order to insinuate customers into its confidence and improve the image. Finally, Mercedes provides a guarantee on all cars manufactured by it, underlining the outstanding quality of its products and its care about the customers. The company uses it centers situated in various countries, in order to increase the level of sales and improve the level of performance of the company.
Conclusion
Having analyzed the given facts, it is possible to make a certain conclusion. The supply chain is extremely vital under modern conditions as it creates the basis for the further development of the company and has a great impact on the functioning of all its departments. It consists of several important aspects which could not be ignored. Being and outstanding company, Mercedes-Benz has an efficient strategy which is used to control and organize its supply chain. The main goal of the company is to improve its image and maximize customer value, that is why it devotes great attention to its supply chain.
References
Daimler. (2015). Interim Report 2015. Web.
Donati, M. (2015). Mercedes-Benz invests €90 million to rev up supply chain. Supply Management. Web.
Hetzner, C. (2015). Mercedes revamps supply chain, logistics to trim costs. Automotive News. Web.
Piotrowicz, W., & Cuthberston, R. (2015). Supply Chain Design and Management for Emerging Markets. New York: Springer.
Suppliers to the 2015 Mercedes-Benz C class. (2014). Web.